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EMEA Oil Update: Crude Mixed as Market Weigh Progress in Mideast Talks, Supply Risks

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EMEA crude futures diverged in after-hours trading on Thursday after the Trump administration said there were no negotiations underway with Iran, reviving concern that efforts to ease disruptions in the Middle East may be faltering.

Brent crude futures gained 1.3% to $88.94 per barrel, while Murban crude futures were down 3.1% to $90.83/bbl.

Saxo Bank strategists said prices are down about 8% from Monday's peak amid renewed optimism about Middle East supply, while US inventory data highlighted continued stress in refined products, just ahead of the winter demand season.

The Trump administration reportedly said that no negotiations are happening between the US and Iran, but all options remain on the table.

"No negotiations are happening right now, and this will continue until the president feels that maybe they come to the table in a meaningful way. We have not seen that yet," the White House Press Secretary Karoline Leavitt said in an interview with Fox News.

On Thursday, Qatari Foreign Minister Mohammed bin Abdulrahman Al Thani met with his Iranian counterpart to discuss the proposed interim framework, which includes establishing a temporary route in the Strait of Hormuz.

Al Thani's visit follows the visits by Omani and Pakistani officials as mediators step up efforts to revive stalled talks, amid a month-long pause in direct US military strikes on Iran.

On Wednesday, Iran and Oman agreed on a phased framework to facilitate the resumption of safe navigation through the Strait of Hormuz.

Gelber & Associates strategists said that with diplomatic signals improving but regional supply risks unresolved, crude is holding steady as traders await clearer evidence that flows can recover sustainably.

Meanwhile, flows through the Hormuz remained subdued on Tuesday, with security risks still weighing on shipping activity, even as Iran and Oman agreed on a framework to restore safe navigation through the strategic waterway.

The strategic waterway recorded five confirmed vessel crossings, down 28.6% from seven a day earlier, MarineTraffic said. Traffic via Bab el-Mandeb also fell, with 36 confirmed crossings on Aug. 25, down 7.7% from 39 the previous day.

On the supply front, US commercial crude oil inventories increased by 100,000 barrels to 428.9 mmbbls in the week ended Aug. 21, the Energy Information Administration said in its weekly report released Wednesday.

Crude inventories are 1% above the five-year average for this time of year, the EIA said. The build is below Investing.com's estimate of a 1.6-mmbbl build for the week ended Aug. 21.

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